Boyd's isle unit a weak spot in 1Q
Casino operator Boyd Gaming Corp., boosted by a $285 million gain on the sale of its Barbary Coast Hotel & Casino, posted first-quarter earnings yesterday that more than tripled from the year-earlier period.
But the company missed earnings' forecasts by 3 cents and saw a 15.7 percent drop in revenue from subsidiary Vacations Hawaii, Boyd's charter flight subsidiary in Honolulu.
The unit, which operates flights six days a week between Las Vegas and Honolulu, had $10.7 million in revenue, down from $12.7 million a year ago.
Hawaii residents primarily frequent Boyd's downtown properties, which include the California Hotel and Casino, the Fremont Hotel and Casino and the Main Street Station Casino, Brewery and Hotel.
Boyd spokesman Rob Stillwell attributed the decline to "a matter of space" because of a switch to smaller aircraft on the charter flights. The switch was made during the first quarter of 2006 in response to soaring fuel costs.
"It was not a material difference," Stillwell said about the decline in Vacations Hawaii's revenue. "What you have to look at is how well our downtown business is doing, and that business is dedicated to the Hawaii market. It's been serving the Hawaii market for three decades now and has been a consistent performer within our portfolio."
Overall, revenue for the downtown properties segment fell 1.1 percent to $63.8 million from a year-earlier record of $64.5 million while revenue for the entire company fell 12.3 percent to $517 million from $589.6 million.
Net income was $216.3 million, or $2.44 a share, compared with $63.2 million, or 70 cents a share, a year ago. Excluding special items, including charges associated with closing of the Stardust Hotel and Casino in November, adjusted earnings from continuing operations were $44 million, or 50 cents, a share, compared with $72.2 million, or 79 cents a share. Analysts were looking for 53 cents a share last quarter.